Financial Stability and Innovation: The Role of Non-Performing Loans
This study analyses the relationship between non-performing loans (NPLs) and innovation systems at a global level. The data were obtained from the World Bank and the Global Innovation Index over the period 2013–2022 for 149 countries. The k-means algorithm was used to verify the presence of clusters...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-10-01
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| Series: | FinTech |
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| Online Access: | https://www.mdpi.com/2674-1032/3/4/27 |
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| author | Massimo Arnone Alberto Costantiello Angelo Leogrande Syed Kafait Hussain Naqvi Cosimo Magazzino |
| author_facet | Massimo Arnone Alberto Costantiello Angelo Leogrande Syed Kafait Hussain Naqvi Cosimo Magazzino |
| author_sort | Massimo Arnone |
| collection | DOAJ |
| description | This study analyses the relationship between non-performing loans (NPLs) and innovation systems at a global level. The data were obtained from the World Bank and the Global Innovation Index over the period 2013–2022 for 149 countries. The k-means algorithm was used to verify the presence of clusters in the data. Since k-means is an unsupervised machine-learning algorithm, we compared the Silhouette coefficient with the Elbow method to find an optimization. The results show that the optimal number of clusters is three, as suggested using the Elbow Method. Furthermore, a panel data analysis was conducted. Results show that the level of NPLs is positively associated with cultural and creative services exports as a percentage of total trade and innovation input sub-index and negatively associated with the Hirsch Index, ICT services exports as a percentage of total trade, ICT services imports as a percentage of total trade, and information and communication technologies. |
| format | Article |
| id | doaj-art-07d69b0b939e41d2933e61a4c87b7940 |
| institution | OA Journals |
| issn | 2674-1032 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | FinTech |
| spelling | doaj-art-07d69b0b939e41d2933e61a4c87b79402025-08-20T02:00:41ZengMDPI AGFinTech2674-10322024-10-013449653610.3390/fintech3040027Financial Stability and Innovation: The Role of Non-Performing LoansMassimo Arnone0Alberto Costantiello1Angelo Leogrande2Syed Kafait Hussain Naqvi3Cosimo Magazzino4Department of Economics and Business, University of Catania, 95124 Catania, ItalyDepartment of Management, Finance and Technology (MFT), Lum University “Giuseppe Degennaro”, 70010 Casamassima, ItalyDepartment of Management, Finance and Technology (MFT), Lum University “Giuseppe Degennaro”, 70010 Casamassima, ItalySchool of Economics, International Islamic University Islamabad, Islamabad 44000, PakistanDepartment of Political Science, Roma Tre University, 00154 Rome, ItalyThis study analyses the relationship between non-performing loans (NPLs) and innovation systems at a global level. The data were obtained from the World Bank and the Global Innovation Index over the period 2013–2022 for 149 countries. The k-means algorithm was used to verify the presence of clusters in the data. Since k-means is an unsupervised machine-learning algorithm, we compared the Silhouette coefficient with the Elbow method to find an optimization. The results show that the optimal number of clusters is three, as suggested using the Elbow Method. Furthermore, a panel data analysis was conducted. Results show that the level of NPLs is positively associated with cultural and creative services exports as a percentage of total trade and innovation input sub-index and negatively associated with the Hirsch Index, ICT services exports as a percentage of total trade, ICT services imports as a percentage of total trade, and information and communication technologies.https://www.mdpi.com/2674-1032/3/4/27non-performing loansbanking stabilityinnovationk-meanspanel data |
| spellingShingle | Massimo Arnone Alberto Costantiello Angelo Leogrande Syed Kafait Hussain Naqvi Cosimo Magazzino Financial Stability and Innovation: The Role of Non-Performing Loans FinTech non-performing loans banking stability innovation k-means panel data |
| title | Financial Stability and Innovation: The Role of Non-Performing Loans |
| title_full | Financial Stability and Innovation: The Role of Non-Performing Loans |
| title_fullStr | Financial Stability and Innovation: The Role of Non-Performing Loans |
| title_full_unstemmed | Financial Stability and Innovation: The Role of Non-Performing Loans |
| title_short | Financial Stability and Innovation: The Role of Non-Performing Loans |
| title_sort | financial stability and innovation the role of non performing loans |
| topic | non-performing loans banking stability innovation k-means panel data |
| url | https://www.mdpi.com/2674-1032/3/4/27 |
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